Uber, Facebook linked to PwC Australia tax schemes based on leaked government plans

economictimes.indiatimes.com:

PwC Australia advised Uber and Facebook how to restructure in face of an Australian law clamping down on tax avoidance, but both companies said on Friday they were surprised to find out PwC's advice may have been based on leaked government plans. The «big four» firm is under pressure to name all the clients it advised on the basis of confidential government tax plans leaked by a former partner between 2014 and 2017 while consulting for the government on international taxation. Citing two sources, Reuters reported on Wednesday Google had received confidential information from a former PwC employee confirming the likely Jan.

1, 2016 start date of Australia's Multinational Anti-Avoidance Law (MAAL) after there had been calls from a number of organisations to delay the legislation. Uber and Facebook on Friday said they had received advice from PwC Australia about the law. Facebook said it turned to PwC after the draft legislation was released, which was in September 2015, while Uber did not spell out the timeline of when PwC began advising it.

However, both companies expressed surprise about the firm's breaches of government confidentiality. «We had no knowledge their advice may have been based on improperly obtained information,» an Uber spokesperson said. Uber dropped PwC Australia as a tax adviser in 2016 after «engagements» with the Australian Tax Office, the spokesperson added.

Uber then restructured its tax affairs in 2017. Facebook said it was one of the first multinationals to restructure to comply with the tax avoidance law. «Facebook did not seek advice from PwC on how to comply with the MAAL until after Treasury issued the draft legislation, which is why we were surprised to learn of PwC's alleged conduct,» the